Schiphol and Malaysia Airports deal back on the agenda

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A report has been submitted to the Malaysian Finance Ministry this week detailing recommendations on government-linked funds relating to the possible acquisition of a stake in Malaysia Airports Holding by the Dutch Schiphol Group.

Although details are not yet known, it appears that talks are still progressing, despite claims last week by a senior transport ministry official that the government had ruled out selling a stake to a foreign investor. The government has a special share in Malaysia Airports giving it a veto on certain major decisions affecting the company.

In total, Malaysia Airports is contracted to pay M$1.14bn ($300m) in operating fees over the next five years to the government, a level that has been suppressing profits which fell 30% in 2000 to M$204m ($54m). Early last year the company failed in a bid to launch a new M$600m ($160m) plus share offering.